Get premium membership and access revision papers, questions with answers as well as video lessons.

Bba 400 Company Law Question Paper

Bba 400 Company Law

Course:Bachelor Of Commerce

Institution: Kenyatta University question papers

Exam Year:2011

KENYATTA UNIVERSITY
UNIVERSITY EXAMINATIONS 2011/2012
FIRST SEMESTER EXAMINATION FOR THE DEGREE OF BACHELOR OF
COMMERCE

BBA 401: COMPANY LAW

DATE: Tuesday, 29th November, 2011 TIME: 2.00p.m. – 4.00p.m.

INSTRUCTIONS:
Answer Question One and any other TWO Questions.

Q.1) In 2010 Mr. and Mrs. Pip registered a company Pip Ltd whose only object was to operate
a public transport business.

Mr. Pip took 99 shares in the company and Mrs. Pip took shave bringing to the total
issued shared to 100.

In May 2011, a bus owned by the company was involved in an accident where several
people were injured.

Pip and Mrs. Pip are afraid that the assets of the company may not be adequate to meet
the demands that request are given by the court.

Moreover, Pip, as the director of the company had borrowed Kshs.5 million from Bidii
Bank. 1 million of that money had been used to finance a holiday for himself and his
wife.
Page 1 of 2

The rest had been used to purchase a plot of land for the company which it was hoped the
company would sell at a later date and make some profit.

It also appears that much of the profit made by the company had been
appropriated by Pip without going through the procedure of declaring a dividend.

Discuss the legal consequences arising from the above facts.

(30 marks)

Q.2) (i)
Critically examine the rights of a shareholder.

(10 marks)

(ii)
What are the contents of a company’s memorandum of

Association.

(10 marks)

Q.3) (i)
Discuss the duties of a director of a company to the company.
(10 marks)

(ii)
What remedies are available to the company where a director
has breached his duty?

(10 marks)

Q.4) Where a company has capital on the issue of its shares, such capital must

be maintained and should not be returned to shareholders. Discuss.
(20 marks)

Q.5) Write short notes on:

(a)
Reasons for winding up of a company as provided for under the

Companies Act.

(13 marks)

(b)
the persons entitled to apply for the winding up of a company.
(7 marks)

Page 2 of 2

Bba 400 Company Law Question Paper

More Question Papers

Popular Exams

Mid Term Exams

End Term 1 Exams

End Term 3 Exams

Opener Exams

Full Set Exams